Price List: Zhongjing steps back on export PP offers on weak demand

Chinese PP major – Zhongjing Petrochemical has opened another price list for export homo-PP offers with $5/ton reduction from earlier this week as the demand condition in both local and overseas markets shows no signs of improvement.

The latest offers from the producer and changes from the previous offers are as follows:

Indeed, data from CommoPlast shows that the domestic spot homo-PP market in China fell three days in a row this week, taking a hit from the renewed COVID-19 lockdowns and the wait-and-see attitude for the outcome of the National Congress Meeting.

CommoPlast reported earlier about the improving local supply outlook following the restart at at least nine plants and the startup at CNPC Guangdong Petrochemical. Chinese producers have been conservative in lowering selling prices due to high production costs, however, there might be limited choices lying ahead.  

Background:

Fujian Zhongjing Petrochemical is a subsidiary of China Soft Packaging Group Holdings Limited – a leading BOPP packaging products manufacturer in China. The company ventured into the upstream sector by building its first PP plant in 2012 and has been actively planning to expand the capacity since then.

Existing plants include two PP lines with a nameplate capacity of 1 million tons/year and a 750,000 tons/year propane dehydrogenation (PDH) unit based in Fujian, China. 

In 2018, the company signed a contract to use LyondellBasell’s 5th Generation Spheripol technology to build a new PP line with an estimated annual output of 1.2 million tons/year. The new plant is scheduled to come online between late 2022 to early 2023. 

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